The concept of smart cities in India symbolizes a bold step toward urban modernization, leveraging technology and innovative planning to enhance living standards and infrastructure. However, beneath this transformative vision lies a critical and often overlooked issue: urban poverty. Despite promises of improved services, efficient governance, and economic opportunities, a significant portion of the urban population, particularly the poor, remains excluded from these advancements. Urban poverty in smart cities is not merely a social concern but a complex socio-economic phenomenon that disrupts equitable development and sustainability.

Challenges like inadequate housing, lack of access to essential services, and socio-economic exclusion persist in smart city frameworks, hindering their inclusive growth. Addressing urban poverty requires innovative solutions that integrate technology with human-centric policies. This introduction explores the causes and impacts of urban poverty in Indian smart cities and highlights the need for holistic strategies to ensure these urban ecosystems benefit all citizens, not just a privileged few.

Despite the promise of improved infrastructure and services, smart city initiatives often fail to reach marginalized communities. The urban poor face barriers such as limited digital literacy, lack of affordable housing, and exclusion from modern infrastructure. This unequal access exacerbates socio-economic divides, leaving vulnerable populations unable to benefit from technological advancements. For smart cities to truly succeed, they must prioritize inclusivity by addressing the needs of impoverished communities. Without targeted efforts to integrate the urban poor into these initiatives, the vision of a smart city risks becoming a privilege for a select few rather than a universal reality.

Rapid Urban Migration Overwhelming Infrastructure

The rapid migration of rural populations to urban areas in search of better opportunities often overwhelms the infrastructure of smart cities. Migrants frequently settle in informal settlements or slums due to the high cost of living, which leads to overcrowding, poor sanitation, and environmental degradation. The strain on resources such as water, electricity, and transportation creates challenges in ensuring equitable service distribution. Smart cities must adopt data-driven planning and scalable solutions to accommodate the influx of migrants while preventing the formation of unplanned settlements that hinder sustainable urban development.

High Cost of Living in Smart Cities

The high cost of living in smart cities creates economic barriers for low-income groups. Rising housing prices, expensive transportation systems, and inflated utility costs make urban life unsustainable for many. These costs disproportionately affect the urban poor, pushing them further into poverty despite living in technologically advanced environments. Smart cities must address affordability by developing low-cost housing solutions, subsidizing essential services, and promoting policies that reduce living expenses. Failure to tackle this issue risks creating cities that are technologically advanced but socially unequal, perpetuating cycles of poverty and exclusion.

Lack of Affordable Housing for Urban Poor

Affordable housing remains a significant challenge in smart cities, with real estate development often catering to middle- and upper-class populations. Low-income groups are forced into overcrowded slums or informal housing, which lack basic amenities and security. This marginalization hinders the urban poor from accessing opportunities available in smart cities. Policy interventions must focus on inclusive housing schemes, public-private partnerships for low-cost housing development, and innovative financing models to address this gap. Ensuring access to affordable and adequate housing is critical to creating equitable smart cities that provide opportunities for all residents.

Inadequate Access to Healthcare and Sanitation

Access to quality healthcare and sanitation remains limited for urban poor communities in smart cities. Many impoverished areas lack basic facilities such as clean water, sanitation systems, and affordable healthcare services, resulting in poor living conditions and preventable health issues. Smart cities must integrate technology to optimize resource allocation and ensure equitable access to healthcare and sanitation. For instance, mobile health units, IoT-based resource tracking, and AI-driven healthcare delivery can help bridge this gap. Addressing these disparities is essential for fostering healthier and more inclusive urban environments.

Limited Job Opportunities and Skill Mismatch

Despite the advanced economic ecosystems of smart cities, low-income groups often face unemployment or underemployment due to a lack of skills aligned with modern industries. The urban poor are often excluded from economic growth opportunities because they lack access to quality education and vocational training. Smart cities must invest in skill development programs, digital literacy initiatives, and job placement services tailored to the needs of disadvantaged populations. By addressing the skill mismatch, cities can create pathways for economic mobility and reduce the socio-economic divide.

Social Exclusion in Urban Planning

Urban planning in smart cities often overlooks the needs of marginalized populations, leading to social exclusion. The emphasis on technology and aesthetics frequently sidelines the priorities of the urban poor, such as affordable transportation, public spaces, and basic amenities. This exclusion reinforces socio-economic divides and limits the inclusivity of urban environments. Planners must adopt participatory approaches that involve disadvantaged communities in decision-making processes to ensure their needs are met. Creating inclusive urban spaces that prioritize equity is essential for the long-term success of smart cities.

Digital Divide Hindering Inclusivity

The digital divide remains a significant obstacle for the urban poor in accessing the benefits of smart city initiatives. Limited digital literacy, lack of internet access, and unaffordability of digital devices prevent marginalized populations from participating in digital governance and services. This exclusion undermines the promise of smart cities as equitable and efficient urban environments. Bridging the digital divide requires targeted interventions such as free public Wi-Fi, affordable devices, and digital literacy programs. Ensuring digital inclusivity can empower the urban poor to access opportunities and improve their quality of life.

Environmental Degradation in Slum Areas

Urban poverty often results in environmental degradation in slum areas, where the lack of proper waste management, sanitation, and clean energy solutions leads to unhealthy living conditions. The absence of sustainable infrastructure in these areas exacerbates health risks and contributes to urban pollution. Smart cities must address this challenge by implementing community-driven waste management systems, promoting clean energy solutions, and integrating green technologies into slum rehabilitation programs. Addressing environmental degradation in impoverished areas is essential for building sustainable and inclusive smart cities.

Inefficiency in Government Policies and Implementation

Government initiatives aimed at alleviating urban poverty, such as affordable housing schemes and livelihood programs, often face inefficiencies in implementation. Corruption, lack of transparency, and inadequate outreach prevent these programs from reaching the urban poor effectively. Smart cities must leverage technology to enhance transparency, streamline service delivery, and monitor policy outcomes. For example, blockchain-based platforms can improve the distribution of housing subsidies, while AI-driven analytics can identify gaps in program implementation. Addressing inefficiencies in government policies is crucial to ensuring that smart cities deliver equitable benefits to all residents.

Research on Urban Poverty in India